Question 1

Crowdfunding entrepreneurs should set a funding target that is ______.

Accepted Answer

A)  aggressive to signal confidence in the product or service for potential investors.
B)  low and easy to outperform in order to generate buzz around the product or service.
C)  realistic enough to attract backers but high enough to cover costs.
D)  as high as possible to generate as much initial cash as possible to infuse into the business. C

Question 2

According to the text,small companies and individuals may choose to manufacture prototypes in China because Chinese factories can manufacture in ______ batches at ______ costs.

Accepted Answer

A)  multiple; moderate
B)  small; low
C)  frequent; high
D)  large; low B

Question 3

The process of raising capital for a new venture from a large audience,usually through the Internet,is called ______.

Accepted Answer

A)  crowdfunding
B)  penny pinching
C)  crowdsourcing
D)  bootstrapping A

Question 4

How does Kickstarter get its money?

Accepted Answer

A)  by charging a percentage of the funds obtained from each successful project
B)  by charging members a modest fee for posting their request
C)  by using crowdfunding themselves
D)  by listing themselves as a nonprofit and getting grants

Question 5

Crowdsourcing is a bootstrapping method that saves money while obtaining valuable ______ resources.

Accepted Answer

A)  information
B)  financial
C)  technological
D)  social media

Question 6

Equity crowdfunding is increasing in popularity all over the world.

Accepted Answer

A) True 
 B)False

Question 7

Research has shown that what percentage of crowdfunded products are delivered later than expected?

Accepted Answer

A)  25%
B)  40%
C)  60%
D)  75%

Question 8

If you cannot convey your product or service idea to your audience of prospective financial backers in a few short sentences,you should ______.

Accepted Answer

A)  provide everyone with a detailed business plan document.
B)  abandon your product or service idea.
C)  spend time getting a clearer sense of the essence of your product.
D)  remind your audience that they are missing out on a unique opportunity.

Question 9

When should you begin broadcasting your product to attract an audience?

Accepted Answer

A)  when your product is ready to ship
B)  when your product is in production
C)  when you have your first working prototype
D)  now

Question 10

Kevin is about to launch a crowdfunding campaign and posts a request on his Facebook page,asking people to share their experiences on crowdfunding sites.What element of conducting a campaign is Kevin observing?

Accepted Answer

A)  Set the right fundraising goal.
B)  Practice the pitch.
C)  Seek and accept advice.
D)  Get the campaign started.

Question 11

Thanks to the Internet,the likelihood of a new business getting formal investment is pretty good.

Accepted Answer

A) True 
 B)False

Question 12

Which crowdfunding platform focuses on science-related projects?

Accepted Answer

A)  RocketHub
B)  GoddardGroup
C)  OurCrowd
D)  Patreon

Question 13

Crowdfunding can help you save money on marketing because it provides ______.

Accepted Answer

A)  customer service automation
B)  your customers with a free sample of your product
C)  you with an idea of the level of interest in your product
D)  free access to mailing lists

Question 14

When setting a funding goal,focus on how much money you would like to have rather than on how much you will need.

Accepted Answer

A) True 
 B)False

Question 15

Crowdfunding is a resource for ______.

Accepted Answer

A)  talent
B)  intellectual property
C)  money
D)  labor

Question 16

Crowdfunding offers the advantage of giving you an idea of the level of enthusiasm and interest in your product or service before you even launch.

Accepted Answer

A) True 
 B)False

Question 17

The first step entrepreneurs should take before starting a crowdfunding campaign is to begin manufacturing the product.

Accepted Answer

A) True 
 B)False

Question 18

Which crowdfunding platform allows its patrons to fund illustrators,authors,podcasters,musicians,and other independent creators?

Accepted Answer

A)  RocketHub
B)  Crowdcube
C)  OurCrowd
D)  Patreon

Question 19

Crowdfunding is a resource for talent and labor,and crowdsourcing is a resource for money.

Accepted Answer

A) True 
 B)False

Question 20

What is characteristic of the lending model of crowdfunders?

Accepted Answer

A)  Investors provide financial support with no expectation of direct return.
B)  Investors are given prizes for their financial support,such as product samples or experiences.
C)  Equity is exchanged for the contribution.
D)  Funds are treated as loans.

Exam 12: Bootstrapping and Crowdfunding for Resources

Crowdfunding entrepreneurs should set a funding target that is ______.

According to the text,small companies and individuals may choose to manufacture prototypes in China because Chinese factories can manufacture in batches at costs.

The process of raising capital for a new venture from a large audience,usually through the Internet,is called ______.

How does Kickstarter get its money?

Crowdsourcing is a bootstrapping method that saves money while obtaining valuable ______ resources.

Equity crowdfunding is increasing in popularity all over the world.

Research has shown that what percentage of crowdfunded products are delivered later than expected?

If you cannot convey your product or service idea to your audience of prospective financial backers in a few short sentences,you should ______.

When should you begin broadcasting your product to attract an audience?

Kevin is about to launch a crowdfunding campaign and posts a request on his Facebook page,asking people to share their experiences on crowdfunding sites.What element of conducting a campaign is Kevin observing?

Thanks to the Internet,the likelihood of a new business getting formal investment is pretty good.

Which crowdfunding platform focuses on science-related projects?

Crowdfunding can help you save money on marketing because it provides ______.

When setting a funding goal,focus on how much money you would like to have rather than on how much you will need.

Crowdfunding is a resource for ______.

Crowdfunding offers the advantage of giving you an idea of the level of enthusiasm and interest in your product or service before you even launch.

The first step entrepreneurs should take before starting a crowdfunding campaign is to begin manufacturing the product.

Which crowdfunding platform allows its patrons to fund illustrators,authors,podcasters,musicians,and other independent creators?

Crowdfunding is a resource for talent and labor,and crowdsourcing is a resource for money.

What is characteristic of the lending model of crowdfunders?